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Digital Dollar Power Shift: Circle’s USDC Closes In on Tether

Stablecoin dominance battle intensifies A major shift may be underway in the world of stablecoins the digital dollars that power much of the global crypto economy. Circle’s USD Coin (USDC) is rapidly gaining ground on Tether’s USDT, potentially cracking the long-standing balance of power in the stablecoin market. Recent data shows USDC supply and usage […]

Stablecoin dominance battle intensifies

A major shift may be underway in the world of stablecoins the digital dollars that power much of the global crypto economy.

Circle’s USD Coin (USDC) is rapidly gaining ground on Tether’s USDT, potentially cracking the long-standing balance of power in the stablecoin market. Recent data shows USDC supply and usage surging, tightening the gap with Tether’s dominance for the first time in years.

USDC’s growth accelerates

The latest numbers show USDC supply rising about 8% in a single month, pushing the stablecoin close to a new market-cap high of roughly $79 billion.

But the bigger signal comes from transaction activity.

In 2026 so far, USDC has processed about $2.2 trillion in adjusted transfer volume, compared with roughly $1.3 trillion for Tether’s USDT, giving USDC about 64% of the combined transaction share between the two leading stablecoins.

That marks the first time since 2019 that USDC has overtaken USDT in this key usage metric.

The stablecoin giants

Stablecoins are digital tokens pegged to the U.S. dollar and backed by reserves such as cash and short-term U.S. Treasury bills. They act as the core payment and settlement layer of the crypto economy, enabling traders and institutions to move money across blockchains instantly.

For years, Tether dominated the sector, still holding the largest market capitalization among stablecoins and remaining deeply embedded across global crypto exchanges.